The South African owner of burger chain Wimpy has acquired Gourmet Burger Kitchen in a deal valuing the business at £120 million.

Famous Brands said its acquisition of Gourmet Burger Kitchen from Nando's South African-based private equity owner Capricorn Ventures, is the “biggest deal the group has ever concluded”.

The company said in a statement: “The low interest environment in the UK is supportive of continued consumer spend, while the impact of fears of Brexit on this sector appear negligible - endorsed by a recent survey which confirms that despite the generally subdued economy, household spend in the Eating Out category is up four per cent year on year in June 2016.”

Famous Brands strategic adviser Kevin Hedderwick said it will continue to expand the Gourmet Burger Kitchen in the UK by opening 10 to 15 new restaurants a year and will also look to export the brand to South Africa.

Gourmet Burger Kitchen, which was founded in London in 2001, currently has 75 restaurants across the UK, including outlets in Glasgow and Edinburgh.

Famous Brands said there will be no changes to personnel as a result of the deal.

Wimpy, which has largely disappeared from the UK high street, is one of the leading fast food chains in South Africa.